Trump is so obsessed with winning that he might make America lose

In his zero-sum universe, you’re either victorious or you’re defeated.

 “I win against China. You can win against China if you’re smart,” he said at a campaign event in July 2015.
.. “Vast numbers of manufacturing jobs in Pennsylvania have moved to Mexico and other countries. That will end when I win!”
.. “China, Japan, Mexico, Brazil, these countries are all taking our jobs, like we’re a bunch of babies. That will stop,”
.. In Trump’s view of the world, there is a finite amount of everything — money, security, jobs, victories — and nothing can be shared.
.. It’s a universe where the strong do what they can and the weak suffer what they must, as Thucydides said.
.. The problem is that the triumphs that Trump craves — strength, safety, prosperity — cannot be achieved alone.
.. They require friends and allies, and they require the president to see those people as partners, not competitors.
.. other governments don’t like to be punching bags, the only role he appears to envision for them.
.. In real estate, relationships often take the form of one-off transactions: You can cheat people you’ll never do business with again.
.. Winners have trade surpluses, and losers have trade deficits.
.. The United States is the biggest economy with the biggest military, and therefore the United States has leverage to get the best deals. If we don’t emerge from negotiation with a clear advantage, that’s because our negotiator was a soft-headed, do-gooder globalist who didn’t put America first.
.. Washington has the most leverage when it deals with countries one on one, which is why, he says, “we need bilateral trade deals,” not “another international agreement that ties us up and binds us down.”
To abide by the same rules as less-powerful countries would be to sublimate American interests to those of lesser nations.
..  Trump seeks to begin negotiations with a threat that forces the other side to defend its smaller piece. He pledges to tear up NAFTA, rip up the Iran nuclear deal and revisit America’s relationship with NATO — unless he gets concessions.
.. he gains advantage not by telling the truth but by saying things he believes will boost his bargaining power and sell his vision: China has been allowed to “rape our country.”
.. He’s just an alliance-hating unilateralist.
..  he sees three kinds of immigrants:
  1. smart guys from smart countries, like Norway,
  2. undeserving charity cases from “shithole” countries and
  3. terrorists/gang members who threaten ordinary Americans.

.. The zero-sum cosmology touches everything. Obamacare supposedly sticks us with the bill for people who should pay for their own insurance — or a find a job that provides it.

..  he doesn’t exercise, because “the human body was like a battery, with a finite amount of energy, which exercise only depleted.”

..  China is more a strategic competitor than a real partner linked by shared values.

.. “after more than four decades of serving as the nation’s economic majority, the American middle class is now matched in number by those in the economic tiers above and below it.” That’s a real problem, and Trump is right to point it out.

.. He could have demanded that NATO members pay more without signaling that he might abandon the mutual-defense agreement that undergirds a treaty to contain Russia.

.. Relations among nations are not like real estate deals. The president has to negotiate with the same people again the next month, and they’ll remember how they’ve been treated.

Israel’s Benjamin Netanyahu never forgave President Barack Obama for openly criticizing his approach to settlement-building;

imagine how every other leader feels about being constantly humiliated by Trump.

.. Other countries form judgments about whether American promises are credible and whether they can trust the president. Trump says he’s willing to talk with North Korea about its nuclear program, but surely Kim Jong Un is watching as Trump threatens to shred the Iran nuclear agreement.

..  The Belt and Road Initiative, China’s plan to blaze new commercial trails and cement new political ties via infrastructure investment in dozens of countries, is seven times larger than the Marshall Plan when adjusted for inflation.

.. More than 120 nations already trade more with China than with the United States.

.. China is investing in smaller European Union members like Hungary and Greece to alter official E.U. attitudes toward Beijing. That’s why the Trans-Pacific Partnership, which Trump quashed, was more than just a trade deal. By joining, Trump could have expanded U.S. ties with many of China’s neighbors, governments that fear overreliance on China’s goodwill for future growth.

.. Trump’s win-or-lose philosophy is most confused when it comes to immigration. Foreigners who want to become Americans are not charity cases. They participate in the labor force at higher rates (73.4 percent, according to the Bureau of Labor Statistics) than native-born Americans.

.. Trump’s tendency to hire foreign guest workers over Americans at his own properties suggests that he understands something about how hard they work.

.. The undocumented contribute $13 billion to the nation’s retirement fund each year and get just $1 billion in return.

.. “More than three out of every four patents at the top 10 patent-producing US universities (76%) had at least one foreign-born inventor,”

..  tourism has fallen 4 percent, with a resulting loss of 40,000 jobs. Foreign applications to U.S. universities are down, too.

.. he doesn’t seem to know that some of our country’s greatest success stories began in failure.

  1. Thomas Edison famously erred 1,000 times on the way to inventing the light bulb — it “was an invention with 1,000 steps,” he said.
  2. Henry Ford went broke repeatedly before he succeeded.
  3. Steve Jobs, a college dropout, was fired from the company he founded. Even
  4. Trump’s own businesses have gone bankrupt.

.. If he wants to track terrorists before they try to enter the United States, he needs support from foreign intelligence services.

.. Today, the United States doesn’t have that kind of leverage, and Trump’s aggressive criticism of other countries, including allies, poisons public attitudes toward the United States and makes it harder for foreign leaders to cooperate with Washington publicly.

.. Trump and his leadership at some of the lowest levels since Pew began tracking the U.S. image abroad in 2002. Almost three-quarters of those surveyed said they have little to no confidence in Trump.

.. if Trump wants to make the best deals, he’ll need to learn a few words:

  1. respect,
  2. cooperation and
  3. compromise.

These ideas won’t fire up a campaign rally. But they might help build an American strategy that works.

 

 

The real reason Trump wants to start a trade war

On most policy issues, when President Trump states his position, you can tell that he’s blurting out an unformed idea that is always subject to change. No one is really surprised when, a day or an hour later, he says the exact opposite, because when it comes to policy, generally speaking, he doesn’t know and he doesn’t care.

There is one exception, however: trade.

When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!

Wilbur Ross on now: “There’s about 1 ton of steel in a car. The price of a ton of steel is $700 or so, so 25% on that would be one half of 1% price increase on the typical $35000 car. So it’s no big deal.”
.. Free trade has widely distributed benefits and concentrated costs, while a tariff like this one that is meant to help a particular industry has concentrated benefits and widely distributed costs.
.. There have always been two core ideas underlying his beliefs on trade. The first is that trade is a zero-sum contest in which the only goal is exporting goods. If we import something from another country, even if comparative advantage makes it perfectly reasonable for us to do so, then the other country has “won” and the United States has “lost.”
.. Trump’s second idea about trade is that it represents a kind of contest of pride, even manhood. When he talks about trade he nearly always says that other countries, particularly China, are “laughing at us.” When we, say, buy cheap consumer goods from abroad, it means we’re the sucker, the sap, the patsy.
.. Yet you’ve never heard Trump say exactly which provisions of NAFTA he dislikes or what he would change, probably because he doesn’t know himself. He just thinks that trade wars are good, and easy to win.
.. Gary Cohn, the president’s chief economic adviser, tried to argue to him that increased tariffs would hurt the economy by raising prices on goods that contain steel and aluminum, to which Trump replied that it’s “a small price to pay.” Since he sees this issue to be about not just jobs but even more importantly about pride and dignity, that won’t persuade him.

From where Trump stands, imposing the tariffs is an end in itself. It shows those foreigners that we won’t be taken advantage of, that we’re big and strong, that nobody’s going to laugh at us and get away with it. It’s “winning.” Even if we wind up losing.

Mexico, U.S. Cancel Meeting After Trump Refuses to Avoid Border-Wall Talk

Messrs. Trump and Peña Nieto had a “tense” phone call lasting nearly an hour last Tuesday that culminated in what U.S. officials described as a mutual decision to put off a meeting at the White House.

Things got difficult as Mr. Trump was “exasperated” at Mr. Peña Nieto’s insistence that the U.S. president steer clear of talking about his campaign pledge that Mexico would pay for construction of the border wall, senior U.S. and Mexican officials said.

.. After the call, Mr. Trump directed his senior adviser and son-in-law, Jared Kushner, to call Mr. Peña Nieto back to “discuss ways to keep moving forward on other issues,”

.. The decision to cancel the visit was understandable, said Michael Shifter, president of the Inter-American Dialogue, a Washington think tank.

“It would be completely humiliating for Mr. Peña Nieto to show and agree that Mexico will pay for the wall,” Mr. Shifter said. “No self-respecting Mexican president would do it.”

.. With Mexican presidential elections less than five months away, the canceled trip could boost leftist nationalist Andrés Manuel López Obrador, who is leading in polls.

.. The canceled trip will also complicate negotiations among the U.S., Mexico and Canada to revamp the North American Free Trade Agreement.

“It complicates Nafta negotiations and a host of other issues the U.S. has with Mexico,” Mr. Shifter added.

.. There is broad consensus in Mexico against Mr. Trump’s proposed border wall, and that goes beyond ideology, income levels or party lines

.. “There can’t be a dialogue between presidents if there is no common understanding on fundamental issues,” said Ms. Rojas, who belongs to the Senate’s foreign relations committee. “If Mr. Trump refuses to accept the reality that Mexico will not pay a cent for the construction of the wall, a meeting isn’t possible.”

If Trump Rips Up Nafta, Canada May Shrug, Not Shudder

“We will not be pushed into accepting any old deal, and no deal might very well be better for Canada than a bad deal,” Mr. Trudeau said in Chicago

.. Trump’s threats to tear up the trade agreement, and his administration’s aggressive use of trade laws, may actually help prod export-dependent industries in Canada to finally look beyond the United States market to do business.

.. in the worst-case scenarios, Canadian companies would be facing duties of about 5 percent on shipments to American customers, and closer to 3 percent on many auto parts.

.. the recently concluded Trans-Pacific Partnership trade agreement ..  could significantly expand business opportunities for Canadian companies across oceans.

.. some major Canadian industries have weaned themselves off a near-total reliance on Nafta markets for their exports.

.. British Columbia once sent nearly all of its softwood lumber exports to the United States

.. pork and poultry producer

.. Parts like pig’s feet, which have a relatively small market in North America, can fetch premium prices in Asia.